The following IP guidance note provides comprehensive and up to date legal information covering:
This Practice Note considers the following legal and commercial issues relating to cloud services:
Data portability and backup
Record keeping and audit rights
Compliance with laws
Supplier liability for content
Liability under the contract
Application of TUPE
Variation of terms
Suspension and termination rights
Business continuity and disaster recovery
Governing law and jurisdiction
Sector specific regulation and guidance
For an explanation of key cloud concepts and other background information, see Practice Note: Cloud computing—introduction.
For guidance on the laws applicable to cloud services in a number of worldwide jurisdictions, see Practice Note: Getting the Deal Through: Cloud Computing 2019.
This note is primarily focused on business-to-business cloud transactions. Where services are being provided by suppliers to consumers, additional considerations will apply, see: Consumer protection contractual relationships—overview.
One of the first stages in any cloud transaction is due diligence—a process which can be important for customers in light of the potential inability to significantly influence the contract terms (see: Contract documents below).
Due diligence for cloud deals should cover:
operational history and reliability of supplier—the customer should consider how long the supplier has been operating and request data on historic service level performance
data location, portability and backup—suppliers should be able to tell customers where their
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